Scenarios:

  1. You have received a WINZ Overpayment and want to refund it back to Work & Income NZ (Best Practice).

This document assumes the following:

  • You know how to identify a WINZ Overpayment.

  • You know how to work with WINZ Credit Notes.

  • You know how to setup accounts and generate refunds from within Xero. 

  • NOTE: The Xero account for refunds needs to be a 'Liability' account called "WINZ Repayment Account". Do not include GST, as payments refunded to account will not contain GST, and payments back to WINZ will not have GST added. You will need to choose your own WINZ Overpayment Refund rhythm, i.e. weekly, fortnightly, monthly etc.

Overview

Identifying an Overpayment from WINZ 

  1. Inside your Activity confirm that Attendance is completed and Finalised

  2. Click on Subsidies and Save and Finalise   

  3. If there is an Overpayment the Difference will display on the right side of the Subsidy details 

     

Choose how you would like to handle the Overpayment

Option One - Best Practice

  1. Apply only the correct WINZ subsidy amount to the invoice.

  2. Complete Xero Sync where the WINZ Credit Note (WCN) for the Overpayment will be sync’d to your WINZ Suspense Account.

    1. The Overpayment balance will still be on the WINZ Credit Note.

  3. Within Xero, refund the WINZ Credit Note (the WINZ overpayment) to your WINZ Repayment Account.

  4. Create WINZ Refund Credit Note and itemise refunds on the Credit Note.

    1. You can choose how the Credit Note back to WINZ is articulated:

      1. One item for the whole amount, or;

      2. Line-by-line for each individual overpayment.

  5. WINZ Refund is paid back to Work & Income NZ.

    1. Your refunds can be batched and repaid to Work & Income NZ on a rhythm determined by your business.

 

Option Two - Automatically Applied to Invoice

  1. The WINZ payment is automatically applied to the invoice.

  2. Complete Xero Sync where the WINZ Credit Note (WCN) for the Overpayment will be sync’d to your WINZ Suspense Account in Xero.

    1. There will be no Overpayment balance on the WINZ Credit Note.

  3. WINZ Payment for Customer (on bank statement) can be coded to Suspense account.

 

Awesome! You now know how to correctly handle a WINZ overpayment!

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